Zcash (ZEC) Breaks $1,600... Aims for $2,000 Amid 4-Year Network Boom

▲ Zcash/ChatGPT generated image ©

Zcash (ZEC) is currently experiencing an all-time high rally, maintaining its strength above $1,600 after a 10% surge the previous day. Privacy transaction activity has reached a four-year high, and over $30 million in funds flowed into Grayscale's ZEC investment product in a single day, indicating that network growth and institutional demand are simultaneously supporting the upward trend.

According to investment media FXStreet on September 23 (local time), Zcash maintained a bullish trend, trading around $1,606 on Wednesday after a 10% increase the previous day. Based on Blockworks data, shielded transactions utilizing Zcash's privacy features recorded 62,379 cases last week, the highest in four years since 2022. Among these, transactions from the latest Ironwood pool accounted for 55,549 cases, leading to an increase in privacy network usage.

Institutional capital inflow also contributed to the rise. Grayscale's ZEC-focused Exchange Traded Fund (ETF) saw an inflow of $32.81 million the previous day, increasing its total net assets to $979.48 million. Additionally, 21Shares' recently launched ZEC-focused Exchange Traded Product (ETP) on Euronext was cited as a factor supporting institutional investment confidence in privacy tokens. FXStreet analyzed that expanding network adoption and institutional demand are supporting ZEC's potential for further gains.

Technically, the upward trend continues. ZEC is significantly above the 50-period Exponential Moving Average (EMA) of $1,424, the 100-period EMA of $1,295, and the 200-period EMA of $1,108 on the 4-hour chart. It is currently approaching an upper resistance trendline around $1,700, connecting the highs of August 23 and September 19, forming a bullish parallel channel with an ascending support line connecting the lows of September 2 and 16.

If the $1,700 resistance level is decisively broken, ZEC is likely to enter a new price discovery phase, continuing its upward trajectory towards the psychological resistance of $2,000. The Moving Average Convergence Divergence (MACD) remains in the positive territory and has crossed above its signal line, indicating sustained bullish momentum. The Relative Strength Index (RSI) is at 63, suggesting buying pressure is dominant but has not yet entered the overbought zone.

Conversely, if a short-term correction occurs, the first support level is $1,595, the high of September 19. If this price level is broken, the next support is indicated at $1,422, the low of September 18, with the 50-period EMA of $1,424 also providing support in a similar range. The key variable determining whether ZEC can challenge $2,000 in the future is whether it can overcome the $1,700 resistance and break above the top of the bullish channel.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*